Robert Half International (RHI) 10-Q 3 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	RHI
Entity Registrant Name	HALF ROBERT INTERNATIONAL INC /DE/
Entity Central Index Key	315,213
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		125,349,795

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 348,336	$ 260,201
Accounts receivable, less allowances of $33,674 and $33,133	737,901	703,228
Other current assets	351,086	320,805
Total current assets	1,437,323	1,284,234
Goodwill	210,880	209,793
Other intangible assets, net	5,882	3,671
Property and equipment, net	146,607	161,509
Deferred income taxes	132,160	118,764
Total assets	1,932,852	1,777,971
LIABILITIES
Accounts payable and accrued expenses	132,343	135,540
Accrued payroll and benefit costs	621,920	539,048
Income taxes payable	23,906	5,141
Current portion of notes payable and other indebtedness	179	167
Total current liabilities	778,348	679,896
Notes payable and other indebtedness, less current portion	704	840
Other liabilities	13,982	10,636
Total liabilities	793,034	691,372
Commitments and Contingencies
STOCKHOLDERS’ EQUITY
Preferred stock, $.001 par value authorized 5,000,000 shares; issued and outstanding zero shares	0	0
Common stock, $.001 par value authorized 260,000,000 shares; issued and outstanding 125,346,963 shares and 127,796,558 shares	125	128
Capital surplus	1,053,573	1,022,411
Accumulated other comprehensive loss	1,704	(20,502)
Retained earnings	84,416	84,562
Total stockholders’ equity	1,139,818	1,086,599
Total liabilities and stockholders’ equity	$ 1,932,852	$ 1,777,971

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 33,674	$ 33,133
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in usd per shares)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	260,000,000	260,000,000
Common stock, issued (in shares)	125,346,963	127,796,558
Common stock, outstanding (in shares)	125,346,963	127,796,558

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net service revenues	$ 1,324,709	$ 1,338,541	$ 3,920,507	$ 3,985,326
Direct costs of services, consisting of payroll, payroll taxes, benefit costs and reimbursable expenses	778,309	786,032	2,309,841	2,343,852
Gross margin	546,400	552,509	1,610,666	1,641,474
Selling, general and administrative expenses	414,179	406,142	1,222,149	1,211,712
Amortization of intangible assets	481	326	1,147	928
Interest income, net	(530)	(283)	(1,108)	(695)
Income before income taxes	132,270	146,324	388,478	429,529
Provision for income taxes	47,570	55,755	144,941	163,928
Net income	$ 84,700	$ 90,569	$ 243,537	$ 265,601
Net income per share:
Basic (in usd per share)	$ 0.69	$ 0.71	$ 1.96	$ 2.07
Diluted (in usd per share)	$ 0.68	$ 0.71	$ 1.94	$ 2.06
Shares:
Basic (in shares)	123,569	127,615	124,567	128,491
Diluted (in shares)	124,200	128,191	125,233	129,216
Cash dividends declared per share (in usd per share)	$ 0.24	$ 0.22	$ 0.72	$ 0.66

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
COMPREHENSIVE INCOME:
Net income	$ 84,700	$ 90,569	$ 243,537	$ 265,601
Foreign currency translation adjustments, net of tax	7,210	(738)	22,206	3,055
Total comprehensive income	$ 91,910	$ 89,831	$ 265,743	$ 268,656

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	COMMON STOCK	CAPITAL SURPLUS	ACCUMULATED OTHER COMPREHENSIVE INCOME	RETAINED EARNINGS
Balance at beginning of period, (in shares) at Dec. 31, 2015		131,156
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock, (in shares)		924
Repurchases of common stock, (in shares)		(3,201)
Exercises of stock options, (in shares)		7
Balance at end of period, (in shares) at Sep. 30, 2016		128,886
Balance at beginning of period at Dec. 31, 2015		$ 131	$ 979,477	$ (10,294)	$ 34,467
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock		1	(1)
Net income	$ 265,601				265,601
Repurchases of common stock		(3)			(123,607)
Stock-based compensation expense			32,803
Exercises of stock options—excess over par value			223
Tax impact of equity incentive plans			(795)
Foreign currency translation adjustments, net of tax	3,055			3,055
Cash dividends ($.72 per share and $.66 per share)					(86,128)
Balance at end of period at Sep. 30, 2016		$ 129	1,011,707	(7,239)	90,333
Balance at beginning of period, (in shares) at Dec. 31, 2016		127,797
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock, (in shares)		818
Repurchases of common stock, (in shares)		(3,268)
Exercises of stock options, (in shares)		0
Balance at end of period, (in shares) at Sep. 30, 2017		125,347
Balance at beginning of period at Dec. 31, 2016	1,086,599	$ 128	1,022,411	(20,502)	84,562
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net issuances of restricted stock		1	(1)
Net income	243,537				243,537
Repurchases of common stock		(4)			(152,650)
Stock-based compensation expense			31,163
Exercises of stock options—excess over par value			0
Tax impact of equity incentive plans			0
Foreign currency translation adjustments, net of tax	22,206			22,206
Cash dividends ($.72 per share and $.66 per share)					(91,033)
Balance at end of period at Sep. 30, 2017	$ 1,139,818	$ 125	$ 1,053,573	$ 1,704	$ 84,416

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
RETAINED EARNINGS
Cash dividends, per share (in usd per share)	$ 0.72	$ 0.66

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 243,537	$ 265,601
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets	1,147	928
Depreciation expense	47,916	46,771
Stock-based compensation expense—restricted stock and stock units	31,163	32,803
Excess tax benefits from stock-based compensation	0	(812)
Deferred income taxes	(13,309)	(8,537)
Provision for doubtful accounts	5,327	3,323
Changes in assets and liabilities:
Increase in accounts receivable	(21,810)	(39,723)
Increase in accounts payable, accrued expenses, accrued payroll and benefit costs	65,745	58,801
Increase in income taxes payable	32,320	12,498
Change in other assets, net of change in other liabilities	(3,573)	(11,233)
Net cash flows provided by operating activities	388,463	360,420
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for acquisitions, net of cash acquired	(1,699)	(1,900)
Capital expenditures	(28,540)	(63,280)
Payments to trusts for employee deferred compensation plans	(23,837)	(17,835)
Net cash flows used in investing activities	(54,076)	(83,015)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock	(167,342)	(126,326)
Cash dividends paid	(91,078)	(85,962)
Payments for notes payable and other indebtedness	(124)	(114)
Excess tax benefits from stock-based compensation	0	812
Proceeds from exercises of stock options	0	223
Net cash flows used in financing activities	(258,544)	(211,367)
Effect of exchange rate changes on cash and cash equivalents	12,292	1,836
Net increase in cash and cash equivalents	88,135	67,874
Cash and cash equivalents at beginning of period	260,201	224,577
Cash and cash equivalents at end of period	348,336	292,451
Non-cash items:
Stock repurchases awaiting settlement	$ 0	$ 9,219

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Nature of Operations . Robert Half International Inc. (the “Company”) provides specialized staffing and risk consulting services through such divisions as Accountemps ® , Robert Half ® Finance & Accounting , OfficeTeam ® , Robert Half ® Technology , Robert Half ® Management Resources , Robert Half ® Legal , The Creative Group ® , and Protiviti ® . The Company, through its Accountemps , Robert Half Finance & Accounting , and Robert Half Management Resources divisions, is a specialized provider of temporary, full-time, and senior-level project professionals in the fields of accounting and finance. OfficeTeam specializes in highly skilled temporary administrative support professionals. Robert Half Technology provides project and full-time technology professionals. Robert Half Legal provides temporary, project, and full-time staffing of lawyers, paralegals and legal support personnel. The Creative Group provides interactive, design, marketing, advertising and public relations professionals. Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, data, analytics, governance, risk and internal audit, and is a wholly-owned subsidiary of the Company. Revenues are predominantly derived from specialized staffing services. The Company operates in North America, South America, Europe, Asia and Australia. The Company is a Delaware corporation. Basis of Presentation. The unaudited Condensed Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). The comparative year-end condensed consolidated statement of financial position data presented was derived from audited financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of the financial position and results of operations for the periods presented have been included. These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of the Company for the year ended December 31, 2016 , included in its Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for a full year. Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany balances have been eliminated. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. As of September 30, 2017 , such estimates included allowances for uncollectible accounts receivable, workers’ compensation losses, and income and other taxes. Management estimates are also utilized in the Company’s goodwill impairment assessment and in the valuation of stock grants subject to market conditions. Actual results and outcomes may differ from management's estimates and assumptions. Advertising Costs. The Company expenses all advertising costs as incurred. Advertising costs for the three and nine months ended September 30, 2017 and 2016 , are reflected in the following table (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Advertising costs $ 12,051 $ 12,572 $ 35,747 $ 35,916

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Pronouncements Stock Compensation. In March 2016, the Financial Accounting Standards Board ("FASB") issued authoritative guidance which changes financial reporting as it relates to Employee Share-Based Payment Accounting. Under the new guidance, several aspects of the accounting for share-based payment award transactions will be simplified, including: i) income tax consequences; ii) classification of awards as either equity or liabilities; and iii) classification on the statement of cash flows. The new guidance was effective for annual and interim periods beginning after December 15, 2016 and was adopted by the Company effective January 1, 2017. The adoption of this guidance did not have a material impact on the Company's financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Revenue from Contracts with Customers. In May 2014, the FASB issued authoritative guidance that provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The new guidance requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The amended guidance also requires additional quantitative and qualitative disclosures. In March 2016, amended guidance was issued to clarify implementation guidance on principal versus agent consideration. In April 2016, an amendment provided clarifications on determining whether a promised license provides a customer with a right to use or a right to access an entity’s intellectual property. In May 2016, an amendment provided narrow scope improvements and practical expedients to reduce the potential diversity, cost and complexity of applying new revenue standard. These amendments, as well as the original guidance, are all effective for annual and interim periods beginning after December 15, 2017. The new standard will be effective for the Company beginning January 1, 2018 and the Company intends to implement the standard with the modified retrospective approach, which recognizes the cumulative effect of application recognized on that date. The adoption of this guidance is not expected to have a material impact on the Company's financial statements, and the Company does not anticipate significant changes to systems, processes, or controls. Lease Accounting. In February 2016, the FASB issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees will be required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The new guidance is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted for all entities upon issuance. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. While the impact of the adoption of this guidance will include the recognition of right-of-use assets and lease liabilities on the Company's statement of financial position, the Company is in the process of evaluating the impact of adoption of this guidance on its systems, processes, and controls. Classification of Certain Cash Receipts and Cash Payments in Statement of Cash Flows. In August 2016, the FASB issued authoritative guidance designed to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows, including: i) contingent consideration payments made after a business combination; ii) proceeds from the settlement of insurance claims; and iii) proceeds from the settlement of corporate-owned life insurance policies. The new guidance is effective for the Company for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The Company believes the adoption of this guidance will not have a material impact on its financial statements. Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued authoritative guidance to simplify the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is greater than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The new guidance is effective for the Company beginning after December 31, 2019, although early adoption is permitted. The Company believes the adoption of this guidance will not have a material impact on its financial statements. Stock Compensation. In May 2017, the FASB issued authoritative guidance updating which changes in the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the amended guidance, entities are required to account for the effects of a modification if the fair value, vesting conditions or classification (as an equity instrument or a liability instrument) of the modified award change from that of the original award immediately before the modification. The new guidance is effective for the Company in interim or annual periods beginning after December 15, 2017. The Company believes the adoption of this guidance will not have a material impact on its financial statements.

Other Current Assets

Other Current Assets	9 Months Ended
	Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Other Current Assets Other current assets consisted of the following (in thousands): September 30, December 31, 2016 Deposits in trusts for employee deferred compensation plans $ 277,752 $ 236,371 Other 73,334 84,434 Other current assets $ 351,086 $ 320,805

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment consisted of the following (in thousands): September 30, December 31, 2016 Computer hardware $ 172,231 $ 170,746 Computer software 375,447 374,490 Furniture and equipment 103,115 100,472 Leasehold improvements 144,591 133,541 Other 9,702 9,993 Property and equipment, cost 805,086 789,242 Accumulated depreciation (658,479 ) (627,733 ) Property and equipment, net $ 146,607 $ 161,509

Accrued Payroll and Benefit Cos

Accrued Payroll and Benefit Costs	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Accrued Payroll and Benefit Costs	Accrued Payroll and Benefit Costs Accrued payroll and benefit costs consisted of the following (in thousands): September 30, 2017 December 31, 2016 Payroll and benefits $ 274,737 $ 243,301 Employee deferred compensation plans 291,525 252,349 Workers’ compensation 19,355 19,361 Payroll taxes 36,303 24,037 Accrued payroll and benefit costs $ 621,920 $ 539,048 Included in employee deferred compensation plans is the following (in thousands): September 30, 2017 December 31, 2016 Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer $ 85,212 $ 83,899

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies On April 23, 2010, Plaintiffs David Opalinski and James McCabe, on behalf of themselves and a putative class of similarly situated Staffing Managers, filed a complaint in the United States District Court for the District of New Jersey naming the Company and one of its subsidiaries as Defendants. The complaint alleges that salaried Staffing Managers located throughout the U.S. have been misclassified as exempt from the Fair Labor Standards Act’s overtime pay requirements. Plaintiffs seek an unspecified amount for unpaid overtime on behalf of themselves and the class they purport to represent. Plaintiffs also seek an unspecified amount for statutory penalties, attorneys’ fees and other damages. After considerable motion practice in the District Court and two appeals to the Third Circuit, both of which were decided in the Company’s favor, the United States Supreme Court for the second time denied a petition by Plaintiffs for review on October 30, 2017. The practical result of the Supreme Court’s denial is to leave in place the dismissal of the case by the lower courts. The Company believes that this brings an end to this litigation which the Company continues to believe was not meritorious. On March 13, 2014, Plaintiff Leonor Rodriguez, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, San Diego County. The complaint alleges that a putative class of current and former employees of the Company working in California since March 13, 2011 were denied compensation for the time they spent interviewing with clients of the Company as well as performing activities related to the interview process. Rodriguez seeks recovery on her own behalf and on behalf of the putative class in an unspecified amount for this allegedly unpaid compensation. Rodriguez also seeks recovery of an unspecified amount for the alleged failure of the Company to provide her and the putative class with accurate wage statements. Rodriguez also seeks an unspecified amount of other damages, attorneys’ fees, and statutory penalties, including but not limited to statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by California’s Labor Code Private Attorney General Act (“PAGA”). On October 10, 2014, the Court granted a motion by the Company to compel all of Rodriguez’s claims, except the PAGA claim, to individual arbitration. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. On March 23, 2015, Plaintiff Jessica Gentry, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, San Francisco County, which was subsequently amended on October 23, 2015. The complaint, which was filed by the same plaintiffs’ law firm that brought the Rodriguez matter described above, alleges claims similar to those alleged in Rodriguez . Specifically, the complaint alleges that a putative class of current and former employees of the Company working in California since March 13, 2010 were denied compensation for the time they spent interviewing “for temporary and permanent employment opportunities” as well as performing activities related to the interview process. Gentry seeks recovery on her own behalf and on behalf of the putative class in an unspecified amount for this allegedly unpaid compensation. Gentry also seeks recovery of an unspecified amount for the alleged failure of the Company to provide her and the putative class with accurate wage statements. Gentry also seeks an unspecified amount of other damages, attorneys’ fees, and statutory penalties, including penalties for allegedly not paying all wages due upon separation to former employees and statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by PAGA. On January 4, 2016, the Court denied a motion by the Company to compel all of Gentry’s claims, except the PAGA claim, to individual arbitration. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. The Company is involved in a number of other lawsuits arising in the ordinary course of business. While management does not expect any of these other matters to have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is subject to certain inherent uncertainties. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Stock Repurchase Program. As of September 30, 2017 , the Company is authorized to repurchase, from time to time, up to 3.4 million additional shares of the Company’s common stock on the open market or in privately negotiated transactions, depending on market conditions. The number and the cost of common stock shares repurchased during the nine months ended September 30, 2017 and 2016 , are reflected in the following table (in thousands): Nine Months Ended 2017 2016 Common stock repurchased (in shares) 2,957 2,933 Common stock repurchased $ 137,596 $ 112,896 Additional stock repurchases were made in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of exercise price and applicable statutory withholding taxes. The number and the cost of repurchases related to employee stock plans made during the nine months ended September 30, 2017 and 2016 , are reflected in the following table (in thousands): Nine Months Ended 2017 2016 Repurchases related to employee stock plans (in shares) 311 268 Repurchases related to employee stock plans $ 15,058 $ 10,714 The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Repurchase activity for the nine months ended September 30, 2017 and 2016 , is presented in the unaudited Condensed Consolidated Statements of Stockholders’ Equity. Repurchases of shares and issuances of cash dividends are applied first to the extent of retained earnings and any remaining amounts are applied to capital surplus.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The calculation of net income per share for the three and nine months ended September 30, 2017 and 2016 is reflected in the following table (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Net income $ 84,700 $ 90,569 $ 243,537 $ 265,601 Basic: Weighted average shares 123,569 127,615 124,567 128,491 Diluted: Weighted average shares 123,569 127,615 124,567 128,491 Dilutive effect of potential common shares 631 576 666 725 Diluted weighted average shares 124,200 128,191 125,233 129,216 Net income per share: Basic $ .69 $ .71 $ 1.96 $ 2.07 Diluted $ .68 $ .71 $ 1.94 $ 2.06

Business Segments

Business Segments	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Business Segments	Business Segments The Company, which aggregates its operating segments based on the nature of services, has three reportable segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. The temporary and consultant staffing segment provides specialized staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing and web design fields. The permanent placement staffing segment provides full-time personnel in the accounting, finance, administrative and office, and information technology fields. The risk consulting and internal audit services segment provides business and technology risk consulting and internal audit services. The accounting policies of the segments are set forth in Note A—"Summary of Significant Accounting Policies" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The Company evaluates performance based on income from operations before net interest income, intangible amortization expense, and income taxes. The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results for the three and nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Net service revenues Temporary and consultant staffing $ 1,004,808 $ 1,016,248 $ 2,990,710 $ 3,057,496 Permanent placement staffing 111,333 105,117 327,619 324,845 Risk consulting and internal audit services 208,568 217,176 602,178 602,985 $ 1,324,709 $ 1,338,541 $ 3,920,507 $ 3,985,326 Operating income Temporary and consultant staffing $ 87,703 $ 97,786 $ 271,162 $ 302,802 Permanent placement staffing 19,945 20,286 59,293 66,364 Risk consulting and internal audit services 24,573 28,295 58,062 60,596 132,221 146,367 388,517 429,762 Amortization of intangible assets 481 326 1,147 928 Interest income, net (530 ) (283 ) (1,108 ) (695 ) Income before income taxes $ 132,270 $ 146,324 $ 388,478 $ 429,529

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 31, 2017, the Company announced the following: Quarterly dividend per share $.24 Declaration date October 31, 2017 Record date November 24, 2017 Payment date December 15, 2017 The Company’s prior filings contained disclosures regarding a complaint filed in the United States District Court for the District of New Jersey on April 23, 2010, by Plaintiffs David Opalinski and James McCabe, on behalf of themselves and a putative class of similarly situated Staffing Managers, naming the Company and one of its subsidiaries as Defendants. On October 30, 2017, after considerable motion practice in the District Court and two appeals to the Third Circuit, both of which were decided in the Company’s favor, the United States Supreme Court for the second time denied a petition by Plaintiffs for review. The practical result of the Supreme Court’s denial is to leave in place the dismissal of the case by the lower courts. The Company believes that this brings an end to this litigation which the Company continues to believe was not meritorious.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations . Robert Half International Inc. (the “Company”) provides specialized staffing and risk consulting services through such divisions as Accountemps ® , Robert Half ® Finance & Accounting , OfficeTeam ® , Robert Half ® Technology , Robert Half ® Management Resources , Robert Half ® Legal , The Creative Group ® , and Protiviti ® . The Company, through its Accountemps , Robert Half Finance & Accounting , and Robert Half Management Resources divisions, is a specialized provider of temporary, full-time, and senior-level project professionals in the fields of accounting and finance. OfficeTeam specializes in highly skilled temporary administrative support professionals. Robert Half Technology provides project and full-time technology professionals. Robert Half Legal provides temporary, project, and full-time staffing of lawyers, paralegals and legal support personnel. The Creative Group provides interactive, design, marketing, advertising and public relations professionals. Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, data, analytics, governance, risk and internal audit, and is a wholly-owned subsidiary of the Company. Revenues are predominantly derived from specialized staffing services. The Company operates in North America, South America, Europe, Asia and Australia. The Company is a Delaware corporation.
Basis of Presentation	Basis of Presentation. The unaudited Condensed Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). The comparative year-end condensed consolidated statement of financial position data presented was derived from audited financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of the financial position and results of operations for the periods presented have been included. These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of the Company for the year ended December 31, 2016 , included in its Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for a full year.
Principles of Consolidation	Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany balances have been eliminated.
Use of Estimates	Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. As of September 30, 2017 , such estimates included allowances for uncollectible accounts receivable, workers’ compensation losses, and income and other taxes. Management estimates are also utilized in the Company’s goodwill impairment assessment and in the valuation of stock grants subject to market conditions. Actual results and outcomes may differ from management's estimates and assumptions.
Advertising Costs	Advertising Costs. The Company expenses all advertising costs as incurred.
New Accounting Pronouncements	Recently Adopted Accounting Pronouncements Stock Compensation. In March 2016, the Financial Accounting Standards Board ("FASB") issued authoritative guidance which changes financial reporting as it relates to Employee Share-Based Payment Accounting. Under the new guidance, several aspects of the accounting for share-based payment award transactions will be simplified, including: i) income tax consequences; ii) classification of awards as either equity or liabilities; and iii) classification on the statement of cash flows. The new guidance was effective for annual and interim periods beginning after December 15, 2016 and was adopted by the Company effective January 1, 2017. The adoption of this guidance did not have a material impact on the Company's financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Revenue from Contracts with Customers. In May 2014, the FASB issued authoritative guidance that provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The new guidance requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The amended guidance also requires additional quantitative and qualitative disclosures. In March 2016, amended guidance was issued to clarify implementation guidance on principal versus agent consideration. In April 2016, an amendment provided clarifications on determining whether a promised license provides a customer with a right to use or a right to access an entity’s intellectual property. In May 2016, an amendment provided narrow scope improvements and practical expedients to reduce the potential diversity, cost and complexity of applying new revenue standard. These amendments, as well as the original guidance, are all effective for annual and interim periods beginning after December 15, 2017. The new standard will be effective for the Company beginning January 1, 2018 and the Company intends to implement the standard with the modified retrospective approach, which recognizes the cumulative effect of application recognized on that date. The adoption of this guidance is not expected to have a material impact on the Company's financial statements, and the Company does not anticipate significant changes to systems, processes, or controls. Lease Accounting. In February 2016, the FASB issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees will be required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The new guidance is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted for all entities upon issuance. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. While the impact of the adoption of this guidance will include the recognition of right-of-use assets and lease liabilities on the Company's statement of financial position, the Company is in the process of evaluating the impact of adoption of this guidance on its systems, processes, and controls. Classification of Certain Cash Receipts and Cash Payments in Statement of Cash Flows. In August 2016, the FASB issued authoritative guidance designed to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows, including: i) contingent consideration payments made after a business combination; ii) proceeds from the settlement of insurance claims; and iii) proceeds from the settlement of corporate-owned life insurance policies. The new guidance is effective for the Company for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. The Company believes the adoption of this guidance will not have a material impact on its financial statements. Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued authoritative guidance to simplify the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is greater than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The new guidance is effective for the Company beginning after December 31, 2019, although early adoption is permitted. The Company believes the adoption of this guidance will not have a material impact on its financial statements. Stock Compensation. In May 2017, the FASB issued authoritative guidance updating which changes in the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the amended guidance, entities are required to account for the effects of a modification if the fair value, vesting conditions or classification (as an equity instrument or a liability instrument) of the modified award change from that of the original award immediately before the modification. The new guidance is effective for the Company in interim or annual periods beginning after December 15, 2017. The Company believes the adoption of this guidance will not have a material impact on its financial statements.
Commitments and Contingencies	Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred.
Treasury Stock	The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Repurchase activity for the nine months ended September 30, 2017 and 2016 , is presented in the unaudited Condensed Consolidated Statements of Stockholders’ Equity. Repurchases of shares and issuances of cash dividends are applied first to the extent of retained earnings and any remaining amounts are applied to capital surplus.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Advertising Costs	Advertising costs for the three and nine months ended September 30, 2017 and 2016 , are reflected in the following table (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Advertising costs $ 12,051 $ 12,572 $ 35,747 $ 35,916

Other Current Assets (Tables)

Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Other current assets consisted of the following (in thousands): September 30, December 31, 2016 Deposits in trusts for employee deferred compensation plans $ 277,752 $ 236,371 Other 73,334 84,434 Other current assets $ 351,086 $ 320,805

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Components of Property and Equipment	Property and equipment consisted of the following (in thousands): September 30, December 31, 2016 Computer hardware $ 172,231 $ 170,746 Computer software 375,447 374,490 Furniture and equipment 103,115 100,472 Leasehold improvements 144,591 133,541 Other 9,702 9,993 Property and equipment, cost 805,086 789,242 Accumulated depreciation (658,479 ) (627,733 ) Property and equipment, net $ 146,607 $ 161,509

Accrued Payroll and Benefit C23

Accrued Payroll and Benefit Costs (Tables)	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Accrued Payroll Costs and Retirement Obligations	Accrued payroll and benefit costs consisted of the following (in thousands): September 30, 2017 December 31, 2016 Payroll and benefits $ 274,737 $ 243,301 Employee deferred compensation plans 291,525 252,349 Workers’ compensation 19,355 19,361 Payroll taxes 36,303 24,037 Accrued payroll and benefit costs $ 621,920 $ 539,048
Employee Retirement Obligations	Included in employee deferred compensation plans is the following (in thousands): September 30, 2017 December 31, 2016 Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer $ 85,212 $ 83,899

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Number and Cost of Common Stock Shares Repurchased	The number and the cost of common stock shares repurchased during the nine months ended September 30, 2017 and 2016 , are reflected in the following table (in thousands): Nine Months Ended 2017 2016 Common stock repurchased (in shares) 2,957 2,933 Common stock repurchased $ 137,596 $ 112,896
Number and Cost of Employee Stock Plan Repurchases	The number and the cost of repurchases related to employee stock plans made during the nine months ended September 30, 2017 and 2016 , are reflected in the following table (in thousands): Nine Months Ended 2017 2016 Repurchases related to employee stock plans (in shares) 311 268 Repurchases related to employee stock plans $ 15,058 $ 10,714

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Calculation of Net Income Per Share	The calculation of net income per share for the three and nine months ended September 30, 2017 and 2016 is reflected in the following table (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Net income $ 84,700 $ 90,569 $ 243,537 $ 265,601 Basic: Weighted average shares 123,569 127,615 124,567 128,491 Diluted: Weighted average shares 123,569 127,615 124,567 128,491 Dilutive effect of potential common shares 631 576 666 725 Diluted weighted average shares 124,200 128,191 125,233 129,216 Net income per share: Basic $ .69 $ .71 $ 1.96 $ 2.07 Diluted $ .68 $ .71 $ 1.94 $ 2.06

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Reconciliation of Revenue and Operating Income by Reportable Segment to Consolidated Results	The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results for the three and nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Net service revenues Temporary and consultant staffing $ 1,004,808 $ 1,016,248 $ 2,990,710 $ 3,057,496 Permanent placement staffing 111,333 105,117 327,619 324,845 Risk consulting and internal audit services 208,568 217,176 602,178 602,985 $ 1,324,709 $ 1,338,541 $ 3,920,507 $ 3,985,326 Operating income Temporary and consultant staffing $ 87,703 $ 97,786 $ 271,162 $ 302,802 Permanent placement staffing 19,945 20,286 59,293 66,364 Risk consulting and internal audit services 24,573 28,295 58,062 60,596 132,221 146,367 388,517 429,762 Amortization of intangible assets 481 326 1,147 928 Interest income, net (530 ) (283 ) (1,108 ) (695 ) Income before income taxes $ 132,270 $ 146,324 $ 388,478 $ 429,529

Subsequent Events (Tables)

Subsequent Events (Tables)	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	On October 31, 2017, the Company announced the following: Quarterly dividend per share $.24 Declaration date October 31, 2017 Record date November 24, 2017 Payment date December 15, 2017

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accounting Policies [Abstract]
Advertising costs	$ 12,051	$ 12,572	$ 35,747	$ 35,916

Other Current Assets (Detail)

Other Current Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deposits in trusts for employee deferred compensation plans	$ 277,752	$ 236,371
Other	73,334	84,434
Other current assets	$ 351,086	$ 320,805

Property and Equipment, Net - C

Property and Equipment, Net - Components of Property and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Computer hardware	$ 172,231	$ 170,746
Computer software	375,447	374,490
Furniture and equipment	103,115	100,472
Leasehold improvements	144,591	133,541
Other	9,702	9,993
Property and equipment, cost	805,086	789,242
Accumulated depreciation	(658,479)	(627,733)
Property and equipment, net	$ 146,607	$ 161,509

Accrued Payroll and Benefit C31

Accrued Payroll and Benefit Costs (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Payroll and benefits	$ 274,737	$ 243,301
Employee deferred compensation plans	291,525	252,349
Workers’ compensation	19,355	19,361
Payroll taxes	36,303	24,037
Accrued payroll and benefit costs	621,920	539,048
Chief Executive Officer
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Deferred compensation plan and other benefits related to the Company’s Chief Executive Officer	$ 85,212	$ 83,899

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017USD ($)	Apr. 23, 2010subsidiary
Staffing Managers Case
Loss Contingencies [Line Items]
Number of subsidiaries | subsidiary		1
Leonor Rodriguez
Loss Contingencies [Line Items]
Allegations loss	$ 0
Jessica Gentry
Loss Contingencies [Line Items]
Loss contingency	$ 0

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) shares in Millions	Sep. 30, 2017shares
Equity [Abstract]
Maximum number of shares authorized to be repurchased	3.4

Stockholders' Equity - Number a

Stockholders' Equity - Number and Cost of Common Stock Shares Repurchased (Details) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
Common stock repurchased (in shares)	2,957	2,933
Common stock repurchased	$ 137,596	$ 112,896

Stockholders' Equity - Number35

Stockholders' Equity - Number and Cost of Employee Stock Plan Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
Repurchases related to employee stock plans (in shares)	311	268
Repurchases related to employee stock plans	$ 15,058	$ 10,714

Net Income Per Share - Calculat

Net Income Per Share - Calculation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net income	$ 84,700	$ 90,569	$ 243,537	$ 265,601
Basic:
Weighted average shares (in shares)	123,569	127,615	124,567	128,491
Diluted:
Weighted average shares (in shares)	123,569	127,615	124,567	128,491
Dilutive effect of potential common shares (in shares)	631	576	666	725
Diluted weighted average shares (in shares)	124,200	128,191	125,233	129,216
Net income per share:
Basic (in usd per share)	$ 0.69	$ 0.71	$ 1.96	$ 2.07
Diluted (in usd per share)	$ 0.68	$ 0.71	$ 1.94	$ 2.06

Business Segments - Additional

Business Segments - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017segment
Segment Reporting [Abstract]
Number of reportable segments	3

Business Segments - Reconciliat

Business Segments - Reconciliation of Revenue and Operating Income by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Net service revenues	$ 1,324,709	$ 1,338,541	$ 3,920,507	$ 3,985,326
Operating income	132,221	146,367	388,517	429,762
Amortization of intangible assets	481	326	1,147	928
Interest income, net	(530)	(283)	(1,108)	(695)
Income before income taxes	132,270	146,324	388,478	429,529
Operating Segments | Temporary and consultant staffing
Segment Reporting Information [Line Items]
Net service revenues	1,004,808	1,016,248	2,990,710	3,057,496
Operating income	87,703	97,786	271,162	302,802
Operating Segments | Permanent placement staffing
Segment Reporting Information [Line Items]
Net service revenues	111,333	105,117	327,619	324,845
Operating income	19,945	20,286	59,293	66,364
Operating Segments | Risk consulting and internal audit services
Segment Reporting Information [Line Items]
Net service revenues	208,568	217,176	602,178	602,985
Operating income	$ 24,573	$ 28,295	$ 58,062	$ 60,596

Subsequent Events - Dividend An

Subsequent Events - Dividend Announced (Details) - $ / shares	Oct. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Subsequent Event [Line Items]
Quarterly dividend per share (in usd per share)		$ 0.24	$ 0.22	$ 0.72	$ 0.66
Subsequent Event
Subsequent Event [Line Items]
Quarterly dividend per share (in usd per share)	$ 0.24
Declaration date	Oct. 31, 2017
Record date	Nov. 24, 2017
Payment date	Dec. 15, 2017